Oakland objects to multibillion credit card settlement

Oakland joined a growing list of cities on Wednesday to object to a $7.25 billion settlement of a class-action lawsuit filed against Visa and MasterCard.

The lawsuit accused the two credit card companies of colluding to charge merchants high fees to process credit card and debit card payments.

The settlement reached earlier this year allowed for merchants to pass along some of those costs to consumers, however California has a law prohibiting merchants from doing so.

Oakland joined the lawsuit accusing the companies of charging unfairly high fees when the city accepts credit or debit cards for payment of parking tickets, business license taxes and other fees.

The fees cost the city more than $1.2 million a year, City Attorney Barbara Parker said in a statement. "We will not stand by and allow powerful financial institutions to fleece Oakland residents and taxpayers and reap obscene profits by flouting antitrust laws," she said.